The Academy of Art University will be subject to quarterly reviews by a Board of Supervisors committee and could face a new housing fee after some city leaders heard testimony Monday about the university shrinking the housing supply and failing to comply with city codes for years.

"This is an institution that has made a mockery out of any number of duly passed codes," said former Board of Supervisors PresidentAaron Peskin, who used his first formal appearance before a board committee since he was termed out a year ago to blast the academy for "years of empty promises."

"Nobody else gets away with dragging their feet for the better part of the decade," Peskin told the board's land use committee.

The for-profit university is one of the city's largest landlords and its shuttle buses and buildings dot the San Francisco landscape.

Supervisor Eric Mar called the hearing to explore the effect the academy's extensive property purchases and spiking enrollment have had on affordable housing, but the school also came under fire for allegedly being a bad neighbor, illegally converting buildings to academic use and taking more than three years to come up a with an adequate long-term growth plan as required by city law.

The hearing came after the Planning Commission met last week in closed session to consider enforcement action against the school, including a possible lawsuit, after the university acquired 460 Townsend St. and illegally converted it to classroom use in September despite saying it was working to resolve code violations. Some violations date back years.

"We have a real problem here," Supervisor Sophie Maxwell told academy officials at the committee hearing. "I've been here for 10 years, and you've been a problem since I've been here."

Academy President Elisa Stephens, who owns the school with other family members, said the academy was committed to getting its buildings into compliance.

"We will do whatever the city wants us to," Stephens told the committee. "We have made a few mistakes, and we take full responsibility."

A March 2009 Planning Department memo outlining enforcement issues at the academy in 2007 indicates 28 properties had illegal signs and at least 21 properties were illegally converted to group housing or changed to educational uses without getting city permits. In all, 30 of its 32 buildings had code violations for signs or unapproved uses at that time, documents show.

The school says it has corrected some issues and has sought to correct others but said permit approvals are being held up by a city requirement that it conduct an environmental review, a process that has already taken a year and will likely take another 15 months.

"We do know there are a significant amount of compliance issues," said Paul Correa, the academy's planning manager. "We have been faithfully working with city staff."

Brad Paul, a former deputy mayor for housing under Mayor Art Agnos, suggested the Planning Department take a more forceful path and levy an affordable housing fee against the university to help offset the loss of rental units it converts to student housing. It would be similar to the city fees assessed to developers who build commercial buildings.

Zoning Administrator Larry Badiner said the Planning Department was looking at prompt enforcement action regarding the academy's recent violations and would hold monthly meetings with the academy to ascertain progress.